Above I am sharing monthly charts of SPX.
If you look at the biggest drops where SPX drop below 200 ema on monthly chart. Whenever it retraced back to 4.618 fib level, it fell down sharply.
Based on 1930--32 drop, if you look at the 4.618 retracement level, it came out to be 121. SPX reached 121 in 1973 and suffered a 50% drop
Based on 1973 drop, the 4.618 level is 338, where we got the biggest single day drop known as Black Monday
The third time where SPX fell below is 2009 and based on 4.618, SPX should top around 4675.
I would love to know the opinion of the community and any feedback on this analysis.
If you look at the biggest drops where SPX drop below 200 ema on monthly chart. Whenever it retraced back to 4.618 fib level, it fell down sharply.
Based on 1930--32 drop, if you look at the 4.618 retracement level, it came out to be 121. SPX reached 121 in 1973 and suffered a 50% drop
Based on 1973 drop, the 4.618 level is 338, where we got the biggest single day drop known as Black Monday
The third time where SPX fell below is 2009 and based on 4.618, SPX should top around 4675.
I would love to know the opinion of the community and any feedback on this analysis.